BERKELEY, Calif. (AP) -- Biotechnology company Xoma Corp. said Tuesday it turned a profit in the fourth quarter after it recorded a one-time gain related to its declining stock price.
Xoma's share price has fallen about 20 percent since late September, and the company reported a gain of $16.6 million to reflect the reduced price of its stock. Companies often take charges when their stock rapidly increases in value to reflect greater liabilities, and when their stock price decreases, they report one-time gains because their liabilities are smaller.
Xoma is a development-stage company without any products on the market. It is studying a drug candidate called gevokizumab as a treatment for uveitis, a swelling of the uvea, which is the middle layer of the eye. In earlier stage studies, Xoma and its partner Servier are evaluating the drug as a treatment for acne and for osteoarthritis of the hand.
Xoma shares have fallen 21 percent since Sept. 25. The stock traded as high as $4.13 in July, but on Tuesday the shares were unchanged at $3.03.
In the fourth quarter Xoma reported net income of $2.4 million, or 3 cents per share. A year ago it took a loss of $11.7 million, or 34 cents per share. Revenue decreased to $7.4 million from $9.8 million as the company received smaller payments from Servier and from the federal government.
Analysts expected Xoma to take a loss of 24 cents per share and $8.3 million in revenue, according to FactSet.
Xoma said it lost $71.1 million, or $1.10 per share, in 2012. The company posted a smaller loss of $32.7 million, or $1.04 per share, in 2011. Its revenue fell 42 percent, to $33.8 million from $58.2 million
Shares of Xoma rose 7 cents to $3.10 in aftermarket trading.